How can I deduct my medical expenses from taxes?
December 6, 2023 | 40,00 EUR | answered by Ralf Otten
Dear tax consultant,
my name is Anna Ley and I work as an employee in a small company. In the past few months, I have had some health problems and had to undergo many doctor's visits, medications, and therapies. As a result, I have incurred high medical expenses that I would like to deduct for tax purposes.
I am unsure about whether and how I can report these expenses in my income tax return. I have never deducted medical expenses before and am therefore not familiar with the relevant regulations. I am concerned that I may be missing out on tax benefits or doing something wrong that could lead to issues with the tax authorities.
Could you please explain to me which medical expenses I can deduct for tax purposes and the best way to go about it? Are there specific requirements that I need to meet in order to deduct the expenses? What receipts do I need to collect and how precisely do I need to report the expenses in my tax return?
I would greatly appreciate your help and advice on this matter, as I would like to ensure that I take advantage of the tax benefits available to me.
Thank you in advance for your assistance.
Sincerely,
Anna Ley
Dear Mrs. Ley,
Thank you for your inquiry regarding the tax deductibility of medical expenses in your income tax return. I am sorry to hear that you have been struggling with health problems in recent months, but I am happy to assist you in clarifying this matter.
As an employee, you can generally deduct medical expenses for tax purposes, provided they are not reimbursed by your health insurance or otherwise. Deductible medical expenses include doctor and dentist fees, medications, therapies, hospital stays, alternative practitioner services, as well as travel costs to medical appointments. Costs for aids such as glasses or hearing aids can also be deducted.
To report medical expenses in your tax return, it is important that you keep and retain relevant receipts and documents. These include invoices, receipts, doctor's prescriptions, hospital reports, or a certificate from the health insurance company for unreimbursed costs. You should keep these documents carefully as the tax office may request evidence in the event of an audit.
You can report medical expenses in the miscellaneous deductions or extraordinary expenses section of your tax return. Here you can itemize and report the costs accordingly. It is important to keep the receipts even if you do not have to submit them directly with the tax return.
There are no specific requirements that you need to meet in order to deduct medical expenses, as long as they are actually incurred and not reimbursed. However, you should ensure that the costs are reasonable in relation to your income, as there is a reasonable burden threshold beyond which extraordinary expenses are tax deductible.
I hope this information helps you and answers your questions. If you need further assistance or specific help with preparing your tax return, I am happy to help. Please do not hesitate to contact me.
Best regards,
Ralf Otten
Tax Advisor
